TDS acquires IT services provider MSN Communications for $40M
Telephone and Data Systems (NYSE: TDS) believes that a $40 million investment to acquire MSN Communications will enhance the deep IT solutions provided by its wholly owned subsidiary TDS Hosted & Managed Services (TDS HMS).
Englewood, Colo.-based MSN generated $99 million in revenue in 2012 with a suite of products and services that include planning, engineering, procurement, installation and IT management infrastructure hardware solutions. The company has 104 employees.
"(MSN CEO) Doug Schuck and the MSN Communications employees have built an IT services powerhouse acting as a trusted advisor to companies throughout the Rocky Mountain region," said Phil LaForge, president of TDS HMS in a statement. "By joining forces with TDS HMS, MSN Communications is adding colocation and cloud services to their already robust services catalog."
Concurrent with the acquisition, TDS HMS also said it plans to break ground on a Tier 3 data center in Douglas County, just southeast of the Denver metro area, early next year. That facility will "accommodate rapid customer expansion with five phases over buildout covering up to 100,000 square feet," the company said. In addition to colocation services, the center will provide a local cloud solution.
TDS was "the right company for MSN Communications to join forces with" and "this is the right time," Schuck said in the press release. "It's a tremendous moment in our company's 20-year history. I'm proud of our employees for building a company that is now part of a Fortune 500 organization."
- TDS and MSN issued this press release
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